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      Understanding Texas SB 140: Amendment to Expand the State's Telemarketing Rules to SMS

      Effective September 1, 2025, Texas Senate Bill 140 expands the state's telemarketing rules to include sales-related text messages. Here's what you need to know stay ahead of these changes.

       

      Note:

      This article is for educational purposes only and is not intended as legal advice. The information provided may not reflect the most current legal developments. SlickText recommends that you consult with qualified legal counsel to ensure compliance with all applicable laws and regulations when using our services.

      Key Points to Know

      • SB 140 will treat certain sales-related text messages as "telephone solicitation" under Texas law.
      • Businesses sending these messages to Texas residents may need to register with the state, pay a $200 annual registration fee, and post a $10,000 bond. 

      Note:

      Businesses don’t need to pay $10,000 up front. They pay a bonding company a small annual fee and the bond covers them as required by the state.

      • While there is some debate, this law may also apply to Texas-based businesses sending sales-related text messages to any geography. 
      • Exemptions exist for some businesses, which are explained below.
      • Message Timing Guidelines: While it’s not yet fully settled whether Texas’s 8 a.m. to 9 p.m. restriction on telemarketing applies to text messages, we recommend that you send marketing messages only during these hours to help reduce compliance risk and provide a better subscriber experience.
      • Lawsuits can be filed immediately and legal risks for customers can be costly:  Up to $5,000 per violation (possibly per message), as well as lawsuit awards for economic and mental anguish damages and up to 3x damages if the violation was knowing or intentional.
      • Federal TCPA laws still apply — prior consent is always required.

      Registration Requirements

      • Register with the Texas Secretary of State for each business location.
      • Submit a $200 annual filing fee.
      • Provide a $10,000 security deposit via surety bond, irrevocable letter of credit, or certificate of deposit.
      • Submit key business details including principal names, addresses, and sample messages.
      • Registration is valid for one year and must be renewed annually.

      Exemptions

      Exemptions exist for many types of organizations, including:

      • Businesses contacting current or former customers and operating under the same name for at least 2 years.
      • Publicly traded companies, financial institutions, educational institutions, 501(c)(3) nonprofits, and food marketing businesses.
      • Brick-and-mortar retailers operating under the same name for 2+ years with most sales occurring in-store.
      • Businesses contracting with exempt sellers (3+ years in operation, 75% of contracts with exempt entities).
      • Isolated transactions not part of a recurring or systematic pattern.

      Best Practice Recommendations

      • Review SMS message content to determine if it qualifies as sales-related.
      • Determine if you are contacting customers (not just leads or prospects).
      • Limit sends to between 8 a.m. and 9 p.m. in the recipient's time zone.
      • Always get prior consent before texting.
      • Ensure opt-in consent records are clear, compliant, and documented. (Utilize SlickText's audience growth tools to help ensure compliant opt-ins.)
      • Consult qualified legal counsel.